Government Offering Rs 20 Lakh Loan to Start a Business, Here’s How to Apply

Government Loan Scheme: Millions of people in India want to start their own business, but a lack of proper information and capital often becomes the biggest hurdle. Keeping this in mind, the Government of India launched the Pradhan Mantri Mudra Yojana. Under this scheme, self-employment is promoted by providing loans to small and medium-sized businesses. The government launched this scheme in 2015. Under this scheme, the government provides business loans of up to Rs 20 lakh. People avail of this scheme for small businesses such as tea stalls, boutiques, service centres, or manufacturing units.

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Mudra Loan Available in Four Categories

The Pradhan Mantri Mudra Yojana provides loans in four categories. The Shishu category offers loans up to Rs 50,000 and is for starting new businesses. The Kishore category provides loans from Rs 50,000 to Rs 5 lakh, which is for expanding existing businesses.

The Tarun category provides loans from Rs 5 lakh to Rs 10 lakh. The Tarun Plus category offers loans from Rs 10 lakh to Rs 20 lakh. This is for business owners whose businesses are already running and who want to expand them on a larger scale.

How to Apply for Pradhan Mantri Mudra Yojana

To avail of this scheme, you first need to visit your nearest government or private bank. The PM Mudra Yojana application form can be obtained from the bank. Bank officials assist the applicant in choosing the correct category and loan amount.

All the information requested in the application form must be filled in carefully. Along with this, identity proof, address proof, business plan, and necessary bank-related documents need to be attached. After filling in all the information, the form is submitted to the bank, and the application goes into processing.

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Loan Approval Process

After the form is submitted, the bank verifies your documents and business plan. If all the information is found to be correct and the business plan is acceptable, the loan is approved. The loan amount is directly transferred to your bank account. After that, you can use that money to start your own business or expand your existing one.